Loews Corporation Reports Net Income for the Second Quarter of 2005

Business Wire, July 28, 2005

NEW YORK -- Loews Corporation (NYSE:LTR;CG) today reported consolidated net income (including both the Loews Group and Carolina Group) for the 2005 second quarter of $433.8 million, compared to $410.5 million in the 2004 second quarter. Net income attributable to Loews common stock includes net investment gains of $19.5 million (after tax and minority interest) compared to $100.0 million (after tax and minority interest) in the comparable period of the prior year. The results for the second quarter of 2005 include a benefit of $109.2 million related to a federal income tax settlement due primarily to net refund interest and the release of federal income tax reserves at its CNA Financial subsidiary.

Net income and earnings per share information attributable to Loews common stock and Carolina Group stock is summarized in the table below:

June 30,
                           -------------------------------------------
                               Three Months           Six Months
                           -------------------------------------------
 (In millions, except per
  share data)                 2005       2004       2005       2004
                           -------------------------------------------
                                      (Restated)            (Restated)
Net income attributable to
 Loews common stock:
   Income before net
    investment gains
    (losses)               $   358.6  $   269.9  $   666.6  $   580.7
   Net investment gains
    (losses) (a)                19.5      100.0        4.7     (200.3)
                           -------------------------------------------
 Net income attributable
  to Loews common stock        378.1      369.9      671.3      380.4
 Net income attributable
  to Carolina Group stock       55.7       40.6      102.2       75.0
                           -------------------------------------------
 Consolidated net income   $   433.8  $   410.5  $   773.5  $   455.4
                           ===========================================

 Net income per share:
   Loews common stock      $    2.03  $    1.99  $    3.61  $    2.05
   Carolina Group stock    $    0.82  $    0.70  $    1.50  $    1.29
======================================================================
 Book value per share of
  Loews common stock at:
   June 30, 2005           $   70.32
   December 31, 2004       $   66.56
=====================================================================

(a) Includes a loss of $352.9 (after tax and minority interest) for
    the six months ended June 30, 2004 related to CNA's sale of its
    individual life insurance business.

Net income attributable to Loews common stock for the second quarter of 2005 amounted to $378.1 million or $2.03 per share, compared to $369.9 million or $1.99 per share in the comparable period of the prior year.

Net income attributable to Carolina Group stock for the second quarter of 2005 was $55.7 million or $0.82 per Carolina Group share, compared to $40.6 million or $0.70 per Carolina Group share in the second quarter of 2004. The Company is issuing a separate press release reporting the results of the Carolina Group for the second quarter of 2005.

Consolidated revenues in the second quarter of 2005 amounted to $4.0 billion compared to $3.9 billion in the comparable 2004 quarter.

Six Months Ended June 30, 2005 Compared With 2004

Loews consolidated net income (including both the Loews Group and Carolina Group) for the first half of 2005 was $773.5 million, compared to $455.4 million in the comparable period of the prior year. Income before net investment gains (losses) attributable to Loews common stock amounted to $666.6 million in the first half of 2005 compared to $580.7 million in the comparable period of the prior year. Net income attributable to Loews common stock includes net investment gains of $4.7 million (after tax and minority interest) compared to net investment losses of $200.3 million (after tax and minority interest) in the comparable period of the prior year due primarily to a 2004 loss of $352.9 million (after tax and minority interest) for CNA's sale of its individual life insurance business. The results for the six months ended June 30, 2005 include a benefit of $109.2 million from a federal income tax settlement discussed above.

Net income attributable to Loews common stock for the first half of 2005 amounted to $671.3 million or $3.61 per share, compared to $380.4 million or $2.05 per share in the comparable period of the prior year.

Net income attributable to Carolina Group stock for the first half of 2005 was $102.2 million or $1.50 per Carolina Group share, compared to $75.0 million or $1.29 per Carolina Group share in the comparable period of the prior year.

Consolidated revenues in the first half of 2005 amounted to $7.8 billion compared to $7.4 billion in the comparable period of the prior year. The increase in revenues is primarily due to the acquisition of Gulf South during December 2004, improved results at Diamond Offshore and the absence of a loss recorded in 2004 related to CNA's sale of its individual life business.